Case 21 Kornit Digital

Kornit Digital was incorporated under the laws of the State of Israel in the year 2002. In 2015, the company had its IPO and shares traded on the Nasdaq Global Select Market under the symbol “KRNT.” Kornit is the leading player in the fast-growing, industrial and mass production, digital direct-to-garment industry. The company has operations in six countries. The company develops, designs, and markets innovative digital printing solutions for the global printed textile industry. The major aim of the company is to become the operating system for on-demand sustainable fashion-the theme for self-expression through textiles in terms of anyone, anywhere, and anytime. The solutions offered by the company are complemented by additional layers of product and services offerings to serve fulfillers and demand generators with the focus on fashion, apparel, and home décor segments of the industry. The company’s business models are based on digital methods of garment, apparel, and home décor finished goods production and decoration. Kornit Digital connect demand generators such as fashion brands, e-commerce platforms, marketplaces, designers, and licensors to the most advanced production capabilities through its operating system for on demand, sustainable fashionX. By December 31, 2021, the company had approximately 1200 active customers around the world. By the year 2026, it is estimated that Kornit’s technology will leverage the production of approximately 2.5 billion apparel items in an environmentally sustainable manner. By the end of December 31, 2021, Kornit owned 37 issued patents in the United States and 43 provisional or pending US patent applications. The company also had 29 patents issued in non-US jurisdictions. Inorganic growth is a part of the growth strategy of Kornit Digital. The average book value of equity as percent of market value was only 20.8% during the 5-year period 2017–2021.